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Business Account Agreement & Disclosure

SCE FCU (“Credit Union”) offers members many quality financial services. This Business Account Agreement & Disclosure (“Agreement”) explains the terms and conditions associated with each account offered. This Agreement contains the rules, which govern your account(s) with us. Please read carefully and keep it with your records for future reference.

By opening an account with us and signing the Business Membership Agreement, each of you, jointly and severally, agree to the terms and conditions in this agreement, Fee Schedule, Electronic Fund Transfers Disclosure, Dividend Rate Schedule, any receipt accompanying this agreement, and the Credit Union's Bylaws and policies, all of which are incorporated by reference into this agreement. You also agree to any amendments of these documents from time to time, which we may make, and together these collectively govern your membership and accounts. You agree to pay the fees we charge and you give us the right to collect any fees, as earned, directly from the account balance. Retain this agreement and other documentation for future reference.

As used in this agreement, the words “we”, “our”, “us” and similar mean SCE FCU (also referred to as “Credit Union” or “SCE FCU”) and “you”, “your” and similar mean the owner(s) of this account and any “agent” appointed by or on behalf of the owner(s) to sign on the account as a representative. “Party” means a person who, by the terms of the account, has a present right, subject to request, to payment from a multiple-party account other than as an agent. The word "account" means any one or more share or other accounts you have with the Credit Union.

This agreement applies to each business deposit account that you maintain with us. Examples of business accounts include accounts held by corporations, partnerships (general and limited), limited liability companies and sole proprietors. The classification and form of ownership of your account(s) is set forth on the Business Membership Agreement. Unless otherwise noted, this agreement applies only to business accounts and business deposit services and does not apply to credit services.

The word “item(s)” as used in this agreement includes a check, share draft, demand draft, preauthorized draft, or other order or instruction for the payment, transfer or withdrawal of funds including a withdrawal slip, deposit adjustment, automatic transfer and electronic transaction. An item also means any other document created or authorized in your name that would be a check or draft but for the fact that it has not been signed.


Account Ownership

These rules apply to this account depending on the form of ownership specified on the account records. You agree to provide the Credit Union with documentation acceptable to the Credit Union designating each authorized signer with respect to your account(s) and related services offered by the Credit Union. Note: Because decisions concerning whether an account should be held in a particular capacity may have significant legal, tax and estate planning consequences, consultation with your attorney or tax advisor is recommended.

Account Ownership Types for Non-Consumers

Business accounts are available to both profit or nonprofit businesses and associations. Common forms of ownership include:

Sole Proprietorship

An individual (or husband and wife) acting as a sole owner of a business.


This account is owned by a partnership. The signing parties on this account represent and warrant that they constitute all of the partners of the partnership. You also represent to us that any non-partners who may sign the account signature card are authorized to act on the account. Death or disability of a signer will not terminate the authority of the remaining signers to act on the account, subject to the signature requirements of the account signature card.

Limited Partnership

An association by two or more persons having one or more general partners and one or more limited partners. The liability of each partner is limited to the amount invested in the business

General Partnership

An association of two or more persons acting as co-owners of a business.

Joint Venture

Similar to a general partnership except that the co-owners are associated for a temporary purpose, project, or transaction.

Corporation or Voluntary Association Accounts

By signing the agreement, you represent to us that the accountholder is a business corporation, Professional Corporation or professional association or a voluntary association, and the authorized signers are duly authorized to act for the legal entity. The entity must tell us of any change in authorized signers by signing a new agreement.

Limited Liability Company

By signing the signature card, you represent to us that the account holder is a limited liability company and that the authorized signers are duly authorized to act for the legal entity. The entity must tell us of any change in signers by signing a new agreement.

Public Unit Account

The person signing the agreement as custodian holds the funds for the benefit of the public unit. We require documentation of your authority to act on behalf of the public unit.

Fictitious Business Name Accounts

If the name in which the account is held is fictitious, each account holder represents that one or more of the account holders have the right to use that name and have fulfilled all legal requirements for using and or doing business under that name.

Organization Account

Such an account is issued in the name of a legal entity, such as a club or league. We reserve the right to require the governing body of the legal entity to give up a separate authorization telling us who is authorized to act on its behalf. We will honor such an authorization until we actually receive written notice of a change from the governing body.

Power of Attorney

Under certain types of account ownership, you may authorize another person as your agent and attorney-in-fact to act on the account. You shall be bound by and responsible for the actions of your agent, even if the agency relationship is not indicated on the check, withdrawal order or other instruction. You may use our power of attorney form or any other form authorized by law. However, if you choose to use a power of attorney form other than one provided by us, we may recognize it but we are not required to do so. The best way to determine whether we will recognize a power of attorney is for you to bring the power of attorney form and your agent into our office and we can advise you then if we will recognize and act upon the form you present. You must tell us of any changes involving the power of attorney. We will not be liable to you or anyone else if we, in good faith and without actual knowledge that the power of attorney is deficient or has terminated for any reason, act on the written instructions of your attorney-in fact. We may charge you a fee to cover our costs to review any power of attorney document other than the form we provide.



We may change our Bylaws and any terms of this agreement. Rules governing changes in dividend rates have been provided separately. Notice from us to any one of you is notice to all of you. We reserve the right to amend, modify, add to, or delete from the terms or conditions of this agreement and any incorporated document or agreement without prior notice, except as required by law, and except as provided in writing at the time an account is opened. A change may include a change to existing account terms, a change that involves new account terms, and a change that involves the addition of new terms or conditions not otherwise contemplated by you or us at the time you received this agreement. Any change will take effect immediately, unless stated otherwise in any notice we send you.

When applicable law or regulations require the Credit Union to notify you of a change, addition or deletion to this Agreement, the Credit Union may do so by posting the notice on the Credit Union’s home page, by including a message with your account statement, or by any other means that the Credit Union considers appropriate. Our notice may provide you with the option to reject the change, in which case you will be deemed to have agreed to the change pursuant to the procedures set out in the notice or – if there are none specified – by any failure to terminate the account or affirmatively reject the change within 10 days of the effective date of the change. If we give you the option to reject a change, and you choose to do so, we may close your account without liability to you. Our notice may not provide you with the option to reject the change, in which case you will be deemed to have accepted without further action or consent, on your part.



We may make adjustments to an account from time to time. This may be due, for example, to a returned unpaid check or an incorrect deposit.


Authorized Signers

The person(s) named on the Business Account Agreement, duly authorized to make the certification, certify that 1) the corporation, organization, or partnership is within our field of membership; 2) at a regularly held meeting, the person(s) named were appointed officers of the corporation or organization or are duly acting partners of the partnership; 3) BY VIRTUE OF THE AUTHORITY VESTED IN SUCH PERSON(S) BY THE CONSITIUTION, BYLAWS, OR OTHERWISE, ANY ONE OF THE SIGNATORIES, IS AUTHORIZED AND EMPOWERED TO TRANSACT BUSINESS OF ANY CHARACTER WHATSOVER IN CONNECTION WITH THE ACCOUNT; 4) we are authorized to act on instructions received by facsimile and purportedly signed by an authorized signer; and 5) the signature(s) appearing on the Business Account Agreement are genuine signature(s) of said authorized person(s) and that their authority shall continue in force until written notice to the contrary is received by us.

If the status of an individual signing on an account changes, we may continue to honor checks, withdrawal orders and other instructions by this authorized signer until we are notified in writing not to do so.


Bill Pay Service

To use Bill Payer you must have a computer, modem, Internet Service, browser, your account number and a PIN or Access Code. You may use your Bill Payer service to perform the following transactions:

  • Add/Edit Payees: Payees refers to the entity to which you pay bills. The payee can be a company, organization, or individual. The Add/Edit Payee feature allows you to add payees to, delete payees from or edit payee information on your personal list of payees.
  • Make nonrecurring payments from your checking: This feature allows you to schedule one-time payments to payees and enable you to specify the amount of the payment and the processing date.
  • Make recurring payments from your checking account: This feature allows you to schedule recurring payments to payees.
  • View History: View History permits you to see payments made over a specified time period.

The following are limitations to the use of the Credit Union’s Bill Payer service:

  • The maximum transaction amount is $9,999.99 per payment;
  • Payments cannot be made for tax payments, court-ordered payments or payments outside of the United States;
  • Payments cannot be made for DMV obligations;
  • If you close the designated bill payment checking account , all scheduled payments will be stopped;
  • You cannot stop a payment if the payment has already been processed;
  • You can schedule payments 24 hours a day, seven days a week, however, payments scheduled on a Sunday, or holiday will be processed on the next business day;

Payments are made to your payee either electronically via the Automated Clearing House (ACH) or by check or laser draft. The method of payment depends upon the processing method that can be accommodated by the payee or by our bill payment service provider.

It is important that you take into consideration what method of bill payment will be used when scheduling bill payments to ensure payment deadlines are met. If the payee accepts electronic bill payment, the payment may take up to two business days to process. If the payee does not accept electronic bill payment, the payment will be sent in a check form, and may take up to five business days to process.

You are responsible for:

  • any late payment, late fees, interest payments, and service fees charged by merchant(s);
  • any overdraft, NSF or stop payment fees charged by the Credit Union as a result of these transactions;
  • data input of payee information (payment amount(s), name, address and any other pertinent information); you must allow sufficient time for bill payments to be processed so that the funds can be delivered to the merchant on or before the due date.

Refer to the Credit Union’s current Business Rates & Schedule of Fees to see current fees.


Business ATM/Debit Card

You and any Cardholder (the word “Cardholder” refers to any person authorized by you to use the Card) agree that this Card is for use by business owners and employees. The Card can be used for business purpose point-of-sale and Automated Teller Machine (ATM) transactions only. The Card may not be used for personal purposes. You acknowledge and understand that the Card shall not be treated as a consumer card under the provisions of state and federal law. We assume all transactions are for business purposes. We do not monitor transactions to determine their purpose.

The services described in this Agreement will be available to you only as long as you maintain a business checking account with us. We will issue Cards and Personal Identification Numbers (PIN) to you at your request. Each Card will identify your business as well as the Cardholder. Each Cardholder must sign their Card before it may be used. As a security procedure, you agree to require both a Card and a PIN to be used together to obtain cash at ATMs. You may use your Card to purchase goods and or pay for services without a PIN. You agree to immediately notify us by calling 800-866-6474 or write to us at P.O. Box 8017, el Monte, CA 91734 when you terminate a Cardholder’s rights and to promptly return the Card to us. You are liable for the payment of Cardholder transactions authorized by you or your agent or any Cardholder or their agent.

Any notices or amendments mailed to you under this Agreement will be sent to the business mailing address we have for you in our records. You will keep us notified of your current business mailing address.

Our policy is to post and pay Card transactions in the order they are received. We reserve the right to pay Card transactions before checks and other items.

If your account has an overdraft protection feature, unless otherwise agreed in writing, Card transactions that would overdraw your account may covered by overdraft protection.

By using your ATM/Debit Card with your personal identification number (PIN) at automated teller machines (“ATM’s”) or other electronic terminals operated by a participating institution, network system, or company (collectively “terminals”), you authorize us to effect the transactions from or to your savings or checking account(s) in accordance with the instructions given at the terminals. All ATM/Debit Card transactions are subject to the terms and conditions of your account agreements with us governing the affected accounts.

When you use an ATM not owned by SCE Federal Credit Union, you may be charged a fee by the ATM operator and you may be charged a fee for a balance inquiry even if you do not complete a fund transfer. A fee will not be imposed for use of an ATM or Debit Card issued by SCE Federal Credit Union for use of an electronic terminal operated by SCE Federal Credit Union.

You may use your ATM/Debit Card to perform the following transactions:

  • Make account inquiries;
  • Make deposits to your business account- savings or checking;
  • Withdraw cash from your business account- savings, checking or business overdraft line of credit;
  • Transfer funds between your savings or checking account; and
  • Make point-of-sale payments for goods and services to others from your checking account

Some of the transactions listed above may not be available at all terminals. All payments and deposits are subject to later verification by us.

You may make ATM cash withdrawals or PIN based transactions up to $1,500.00 each 24-hour period as long as your available balance will cover the transaction. Various institutions which participate in networks of which the Credit Union is a member may have withdrawal limits different from the amount set forth herein. In the event that a specific ATM is so limited, you may not be able to withdraw more than the cash limit of that particular ATM.

All ATM Cards/Debit Cards are non-transferable and belong to the Credit Union. The Credit Union may cancel, modify and restrict the use of any ATM/Debit Card upon proper notice or without notice if your account is overdrawn or where necessary to maintain or restore the security of accounts on the ATM system.

An ATM provides a quick and convenient way to access your money however, use caution and remember the following safety tips whenever you use an ATM:

  • Be aware of your surroundings, look for well-lighted ATM’s when transacting at night.
  • If you notice anything suspicious when approaching the ATM, return later or use another ATM.
  • Have your transaction ready before you go to the ATM. When you can, fill out any deposit or withdrawal slips/envelopes before leaving your vehicle.
  • Have your ATM Card ready to avoid going through your purse or searching through the contents of your wallet at the ATM site.
  • If you notice anything suspicious while you are transacting business immediately stop your transaction, put your ATM Card away and leave.
  • Consider having another person accompany you to the ATM.
  • Immediately report all crimes to the ATM operator and to local law enforcement officials.
  • Stand close to the ATM and away from others in line to avoid detection of your PIN or other account information.
  • Put your cash away as soon as the transaction is complete; count the cash later in the safety of your vehicle, home, or office.
  • Never give information to strangers at the ATM or to anyone over the phone. Be aware of fraudulent activity or people who pose as Credit Union employees who try to get information from you. This information should only be discussed in person by you at the Credit Union.
  • Remember to keep your PIN a secret. Make sure not to write it on your ATM Card or anywhere else in your wallet; thieves can easily figure out the reason for “hidden” or “secret” numbers.
  • You may access your checking account with your Card to purchase goods (in person or by phone), get cash from a merchant if the merchant permits, or from a participating financial institution, and do anything that you can do with a VISA credit card (that a participating merchant will accept with a VISA credit card).

Using your Card for non-PIN transactions (signature required):

  • You may not exceed $2,500.00 in transactions per day.
  • You may not exceed 15 debit card transactions in one day.

For security reasons, there may be other limits on the daily amount or number of transactions you can make by debit card.

Use of the Card, the Account number on the Card, the PIN or any combination of the three for payments, purchases, or to obtain cash from merchants, financial institutions or others who honor VISA Debit Cards is an order by you for the withdrawal of the amount of the Transaction from your Account. Each Transaction with the Card will be charged to your Account on the date the Transaction is posted to your Account. When the Credit Union receives notification of a Debit Card transaction, it will put a hold on an equivalent amount of funds in your checking account for 3 days or until the day the transaction is charged to your account.

All Card transactions covered by this Agreement are subject to the terms and conditions of your Account agreements with us governing the affected Accounts, except as modified by this Agreement. Any future changes to your Account agreements may affect the use of the card.

You agree that your VISA Debit Card Account will not be used to make or facilitate any transaction(s) that are or might be construed to be illegal pursuant to applicable law, rule or ordinance, including but not limited to gambling. Said use, including any such authorized use, will constitute an event of default under this Agreement. You agree that the Credit Union has no liability, responsibility or culpability whatsoever for any such use by you or any authorized user(s). You agree that you are responsible for repayment of any and all debts incurred for these transactions. You further agree to indemnify and hold the Credit Union harmless from any suits, liability, damages or adverse action of any kind that results directly or indirectly from such illegal use.

Purchases and cash advances made in foreign currencies will be billed to you in U.S. dollars. Transactions processed outside of the United States, or in a foreign currency may be charged a foreign transaction fee, regardless of whether there is a currency conversion associated with the transaction. The conversion rate in dollars will be a rate selected by VISA from a range of rates available in wholesale currency markets for the applicable Central Processing Date, which rate may vary from the rate VISA itself receives, or the government-mandated rate in effect for the applicable Central Processing Date in each instance, plus a one percent fee (1%) fee charged by the issuer.

Refer to the Credit Union’s current Business Rates & Schedule of Fees for information on any additional fees associated with use of this card.

You will get a monthly account statement from us for your checking account that will also include a record of transactions made using your Card. You should review your periodic statement for accuracy and compare your account record against your periodic statement to reconcile balances. Additionally, account transactions may be viewed on-line.

We will not be liable if:

  • You do not have enough money in your account to complete the transaction.
  • An ATM does not have sufficient cash.
  • A terminal or system is not working properly.
  • Circumstances beyond our control (such as fire or flood) prevent the transaction.
  • A merchant or financial institution refuses to accept the Card, or for their retention of the Card.
  • An ATM rejects the Card.

There may be other limitations on our liability.

You will not have the benefit of any consumer law limiting liability with respect to the unauthorized use of your Card. This means your liability for the unauthorized use of your Card could be greater than the liability in a consumer debit card transaction. You accept and agree to undertake the additional risk and greater measure of liability associated with the use of business purpose cards as described in this Agreement.

You are liable for Card transactions you do not authorize if we can prove that we processed the transaction in good faith.

Tell us AT ONCE if you believe your Card and/or PIN has been lost or stolen. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your account (plus your maximum overdraft line of credit). If your Card and/or PIN is lost, stolen, or used without your permission, you agree to notify us immediately and to promptly confirm such notice in writing. If you do not notify us within 60 days from when the periodic statement containing an unauthorized transaction was first mailed or made available to you, we will be entitled to treat the information in the periodic statement as correct, and you will be precluded from asserting otherwise.

If you believe your Card and/or PIN has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, call us at 800-866-6474 or write to us at P.O. Box 8017, El Monte, CA 91734.

We will not be liable for any consequential or incidental damages resulting from the unauthorized use of your Card. Please note your business ATM/Debit card transactions are not subject to any of the consumers’ protections afforded under federal Electronic Funds Transfers Act (Regulation E).

You agree to examine your receipts and periodic statements using ordinary care and to report any errors or problems to us within a reasonable time. You agree that the time to examine your statement and report to us will depend on the circumstances, but will not in any circumstances, exceed a total of 60 days from when the statement containing the error or problem was first mailed or made available to you. If you do not report within 60 days, we will be entitled to treat such information as correct and you will be precluded from asserting otherwise. You further agree that if you fail to report to us within 30 days from when the statement was first mailed or made available to you that we will not be required to pay interest on any refund to which you may be entitled. We will only re-credit your account for errors or problems as required by law. Immediately call us at 800-866-6474 or write us at P.O. Box 8017, El Monte, CA 91734, to report errors or if you have any questions about your electronic transfers. If you tell us orally, we may require your complaint or question in writing within 14 business days. If you provide us with timely notice of an error or problem in your periodic statement, we will investigate the matter and notify you of the results as soon as reasonably possible under the circumstances. You may ask for copies of the documents that we used in our investigation.


Bylaw Requirements

The maximum amount of shares that may be held by any one member shall be established from time to time by resolution of the board.

A member who fails to complete payment of one share within 6 months of his admission to membership, or within 6 months from the increase in the par value in shares, or a member who reduces his share balance below the par value of one share and does not increase the balance to at least the par value of one share within 6 months of the reduction may be terminated from membership at the end of a dividend period.

Shares may be transferred only from one member to another, by written instrument in such form as the Credit Union may prescribe. No transfer of voting rights or other membership privilege is permitted by virtue of transfer to or co-ownership of shares by nonmembers. The Credit Union reserves the right, at any time, to require members to give, in writing, not less than 7 days and not more than 60 days notice of intention to withdraw the whole or any part of the amounts so paid in by them.

No member may withdraw shareholdings that are pledged as required for security on loans without the written approval of the Director of Lending, except to the extent that such shares exceed the member’s total primary and contingent liability to the Credit Union. No member may withdraw any shareholdings below the amount of his/her primary or contingent liability to the Credit Union if he/she is delinquent as a borrower, or borrowers for whom he/she is a co maker, endorser, or guarantor are delinquent, without the written consent of the Director of Lending.


Cash Transactions

Pursuant to Federal law, we are required to report large transactions in cash or coin on Form 4789, which is filed with the US Treasury Department.

In order to accommodate your cash needs, you may be required to provide 72-hour notice of any anticipated large cash withdrawal to your branch. If you do not provide notice, your request may not be fulfilled.


Cashier's Checks ─ Lost or Stolen

You do not have a right to stop payment on cashier’s checks you purchase from us. If you notify us of a lost or stolen cashier’s check, we may, in our sole discretion, elect to not honor such instruments. In the event that a cashier’s check is lost, stolen or destroyed, contact us for the procedures to obtain reimbursement or have the cashier’s check reissued. In general, you will have to complete and sign a Declaration of Loss form describing the cashier’s check and how it came to be lost, stolen or destroyed. We must then wait 90 days from the date the check was issued before we can pay your claim. If 90 days has already passed, then we will act on your claim within a reasonable time. If the check is presented during the 90-day waiting period, we may pay the item to a person entitled to enforce the check. If this happens, we will not pay your claim.

If we determine that any such instrument presented by or on behalf of the holder or whom may otherwise have right to obtain payment from the Credit Union, we may, without notice, pay the instrument, even though you may have paid us a fee to not honor the instrument.


Change of Address

You are responsible to notify the Credit Union upon a change of address or change of name. The address is changed only for the accounts you specify and does not affect other account relationships with us unless you specify you want the address changed for those accounts. The Credit Union is only required to attempt to communicate with you at the most recent address you have provided. If there is a dispute regarding an account and we need to communicate with you (or tender account proceeds), we may, at our option, use the address on record immediately prior to the time we became aware of the dispute. The Credit Union accepts notices of change and any other notice only if provided in writing.


Check Printing

We offer checks in a number of styles and at various prices. The cost of any checks purchased through us will be automatically charged to your account. If you arrange for the printing of your own checks, the form, encoding and format of the checks must follow our check specification requirements and be approved by us in advance. If you use checks that do not meet our specifications, you are liable for any costs or losses that may result from our inability to process them. You agree not to print special limitations on checks, withdrawal orders or other items drawn on your account, such as "void over $100" or "paid in full" or "void after 90 days." If you do print any special limitations, you agree that we are not bound by such limitations and you authorize us to pay such items without regard to the limitation(s).


Check Processing

Unless we have agreed in writing upon arrangements for special handling of your checks, you agree that automated processing is reasonable. We are not obligated to monitor items deposited to or drawn against accounts held by a trustee or other fiduciary to determine whether a trustee or fiduciary is acting consistently with or in breach of any fiduciary duty to you. When we take an item for processing by automated means, “ordinary care” does not require that we examine each item. “Ordinary care” requires only that we follow standards that do not vary unreasonably from the general standards followed by similarly situated financial institutions. A mere clerical error, or an honest mistake, is not considered a failure of the Credit Union to perform any of our obligations. The Credit Union’s own policies and procedures are used solely for our internal reasons and do not establish a higher standard of care for the Credit Union other than that which is provided by law or regulation.

The Credit Union is not responsible for the neglect, mistake or fault of another financial institution or person for the loss, delay, or destruction or misrouting of an item in transit or in the possession of others. If a deposited item is lost or misrouted and we gave you provisional credit for that item, we reserve the right to charge back and you agree to pay the amount of the item if we do not receive final payment.


Choice of Law

Except where preempted by conflicting Federal law or regulation, accounts will be governed by this agreement, all incorporated documents, our bylaws, the applicable laws and regulations of the State of California, and any applicable clearinghouse rules as amended from time to time.


Closing or Suspending Accounts

The Credit Union may close your account at any time as permitted in our bylaws, and remit the balance to you at the last address we have on file for you. We may remit the balance by check payable to the name of the account as shown on our records, even if contrary evidence of account ownership has been given to us. You may close your account at any time upon notice to us, but we may require reasonable authentication of any request to close an account. If your account has a scheduled maturity date, we are not required to allow an early withdrawal and may impose any applicable early withdrawal charge or penalty if we do allow you to close the account early. You will remain liable for the payment of accrued fees on the account and for checks in the process of collection, as well as any other obligations relating to actions or inactions prior to account closure.

We may honor any account holder’s or authorized signer's request to close or suspend an account or transaction. At our discretion we may require the signatures of all account holders and/or authorized signers before permitting the withdrawal or the closing or suspension of an account.

We may dishonor any check, withdrawal order, item or transaction presented for payment after an account is closed by you or by us. At our option, we may honor checks, withdrawal orders, items or transactions after an account is closed if the transaction was part of an electronic fund transfer system or if you fail to place a stop payment order for any outstanding checks or other items. You shall remain responsible and liable for such post-closure checks, items and transactions.

If a dividend-bearing account is closed for any reason before accrued dividends are actually paid, dividends may not be paid for the last dividend period. Unless otherwise specifically agreed to, we may require 7 days advance notice of any withdrawal from a dividend-bearing account.

The Credit Union may, in our sole discretion, “freeze” or place a hold on the balance in your accounts at the Credit Union if there is a conflict regarding rights to your accounts or if we suspect that there is irregular activity involved in your accounts. Should the Credit Union place a “freeze” on your accounts to reasonably investigate our concerns, we shall not be liable to you for any claims you might have including but not limited to claims of wrongful dishonor.

Accounts not maintained in a satisfactory manner are subject to closure by the Credit Union and are reported to ChexSystems.


Credit Verification

You authorize us to check your account, credit and employment, and obtain a credit report from third parties, including credit-reporting agencies, to verify your eligibility for the accounts and services you request. From time to time we may also obtain credit or other information about you from check or credit reporting agencies and/or other means. We may do so at the time you open an account, request a service, at any time while your account is open, or the service is available, or after your account or service is closed. We may use any information obtained for any legal purpose, including to offer other products or services. We will also provide limited information to other subsidiary groups under management.

You waive the confidentiality of your records with the DMV and Vehicle Code §1808.21.

Online Banking Services

Online Banking service allows convenient access to your account information 24 hours a day. To use Online Banking you must have a computer, modem, Internet Service, browser, your account number and a PIN or Access Code.

You may use your Online Banking service to perform the following transactions:

  • Obtain account/loan balance information;
  • Obtain loan payment due date and payoff information;
  • Obtain last dividend, date and amount;
  • Obtain clearance of specific checks;
  • Transfers funds between your savings, checking or Line of Credit;
  • Download transaction information to personal financial management software from your savings and checking accounts;
  • Request check withdrawals from your savings, checking or Money Market accounts;
  • Access your Line of Credit for loan advances by check;
  • Make loan payments;
  • Pay bills through Bill Payer from your checking accounts;
  • Reorder checks, print statements, or change your password Not all services may be available for your account.


Death or Incompetence

You agree to immediately notify us regarding the death or court-declared incompetence of any owner or authorized signer on your account. Until we receive such notice in writing, we may continue to honor items drawn on your account by the authorized signer(s). We may freeze, refuse and reverse payments belonging to the decedent if any owner or authorized signer dies or is declared by a court to be incompetent.


Demand Drafts & Electronic Debits

A demand draft is an item not signed by you that is created by a third-party under your authority for the purpose of charging your account. A demand draft must contain your account number and may contain your printed or typewritten name, a notation that you authorized the draft, or the statement ‘no signature required’ or words to that effect. You agree that we may also apply this section’s rules for demand drafts to electronic debits to your account (for example, debit entries through an automated clearing house).

If you voluntarily give information about your account (such as our routing number and your account number) to someone and authorize them to draw against your account, we may charge your account and pay any items initiated by the person to whom you gave the information. We may continue to honor items or debits from a payee previously authorized by you, until you instruct us to cease doing so, whether or not the payee is acting within the scope of your initial authorization, subject only to such liability as may be imposed upon us by law. If you want us to stop honoring items from a payee previously authorized by you, you must tell us in writing. Until you notify us that such items are not authorized, we can continue to pay them and will not be liable to you even though the items are not in accordance with any authorization you may have given.

This does not, however, obligate us to honor demand drafts or similar items or entries. We may refuse to honor demand drafts or similar items or entries without cause or prior notice, whether or not we have honored or dishonored similar items or entries previously.

You agree that we are under no obligation to verify whether the name and account number shown on the demand draft are consistent. If any information on a demand draft is incomplete, inaccurate, or in error, you agree that we may, at our sole discretion, either pay the demand draft and charge your account for the item as drawn or refuse to honor the demand draft and, without prior notice to you, return the item unpaid.


Deposits to Account & Provisional Credit

We may accept deposits to your account from any source and need not question the authority of the person to make the deposit. We reserve the right to decline any deposit that would result in an account balance of more than $100,000. You will be responsible for any loss because of your failure to identify your account properly by name and number on any deposited item.

All transactions received after our “daily cutoff time” on a business day, or received on a day that is not a business day for us, may be treated as received on the next business day that we are open. If you make a deposit at one of our ATMs, please note that the daily cutoff time is 3pm.

Any item other than cash that we accept for deposit (including items drawn “on us”) may be given only provisional credit until collection is final. Credit for a deposit of or payable in foreign currency will be at the exchange rate established by us (if the Credit Union accepts any such instrument for deposit or collection, you have all the risk associated with current foreign fluctuation). We may at our option handle items as “collection items” rather than as deposits, and will give you prompt notice (which may include notice next day or longer). Handling an item as a “collection item” means that instead of accepting an item for deposit, we send the item to the issuer’s bank for payment. For example, items drawn on an institution located outside the United States are often handled on a collection basis only. Collection items may be credited to your account, but may not be available by us until we receive final payment. If the item is returned unpaid, we will return the item to you. We have sole discretion to determine whether to accept an item for deposit or collection. (The fee for this service is disclosed on the Fee Schedule.) We are only obligated to use ordinary care in collecting items on your behalf.

We are not responsible for transactions initiated by mail or outside depository until we actually receive them. Deposits received at unstaffed facilities such as night depositories will be credited on the day funds are removed and processed by us. You waive any notice of nonpayment, dishonor, or protest regarding any items purchased or received by us for credit to your account or for collection.

Deposit receipts do not necessarily indicate the correct balance in the account or the amount being deposited. Any credit to an account is subject to final verification, payment and adjustment by us from time to time. This may be due, for example, to the return of a check you deposited which was unpaid or if a deposit is posted in the wrong amount.


Direct Deposits

If, in connection with a direct deposit or other plan, we deposit any amount in your account which should be returned to the Federal Government for any reason, you authorize us to deduct the amount of our liability to the Federal Government from this account or from any other account you have with us, without prior notice and at any time, except as prohibited by law. We may also use any other legal remedy to recover the amount of our liability.


Disputed Ownership

Without limiting any other rights we may have, if a dispute arises over any person’s authority to instruct us regarding your account, or we receive a claim to all or a portion of your account that is adverse to your interest, we reserve the right to freeze the account until we receive satisfactory evidence that the dispute has been resolved. We may return checks or other items, marked “Refer to Maker” (or similar language), in the event there is a dispute over the ownership or control of an account. However, we may, without liability to you, continue to honor checks and other instructions given to us by the individuals who appear as authorized signers according to our records.

We may also interplead account funds in the event of a dispute and you agree to pay our attorney fees and other costs associated with any interpleader action or otherwise arising from any adverse claims. We are not liable for any damages suffered by you if we in good faith seek to interplead and a court denies our efforts.



Dividends are subject to the approval of the Credit Union’s Board of Directors and are paid from current income and available earnings, after required transfers to reserves at the end of a dividend period.

Dividend rates are subject to change at the option of the Credit Union. Current rates and Annual Percentage Yields (APY) on share and share certificate accounts are stated on the Rate Schedule and based on the assumption the minimum balance and other requirements are met. Your statement will show the actual Annual Percentage Yield Earned (APYE). This may be different from the APY if conditions are different from above.

Dividends begin to accrue on the business day you deposit cash or non-cash items to your account if deposited before the close of business. We compute the balance in our share and share certificate accounts to determine the dividends you will be paid by using the daily balance method, which applies a daily periodic rate to the balance in your account each day.

Dividends will be compounded and credited quarterly for Prime Savings accounts and Share Certificate accounts with terms over 91 days (91 day Share Certificates are compounded and credited at maturity). Money Market dividends are compounded and credited monthly.


Dormant Accounts – Unclaimed Property

Checking accounts with no deposit or withdrawal transactions for 12 consecutive months, and dividend-bearing accounts with no deposit or withdrawal activity for 12 consecutive months, are considered dormant unless we are contacted within that time. A term share account is classified as dormant if you do not withdraw the deposit after it matures or, if it is automatically renewable, you do not contact us regarding the deposit. We may, but are not obligated, contact you before classifying the account dormant. We will hold all statements on your account if we cannot contact you. The account will continue to be assessed the normal service charges (e.g., monthly maintenance fees, etc.) while it is in dormant status.

We remit funds in an account to the State of California (less a charge for mailing a Notice of Escheat) in accordance with applicable laws. You may reclaim funds we have remitted by contacting the State Controller's Office in Sacramento and producing evidence of ownership.



You warrant that all endorsements on items deposited to your account are genuine. We are authorized to supply your endorsement to any item taken for collection, payment, or deposit to your account. We are also authorized to collect any unendorsed item that is made payable to you without first supplying your endorsement, provided the item was deposited to your account.

To the extent legally permitted, each co-owner of an account appoints each other co-owner as their attorney-in-fact with full power to endorse the name of any co-owner on any item for deposit into the account or cash.

We may refuse to pay items, which bear more than one endorsement or the endorsements of individuals who are not known. If you wish to deposit or cash an item which has been previously endorsed by one or more individuals, we reserve the right to require all endorsers to be present before we accept the item or that their endorsements be guaranteed by their financial institutions.

If we receive an affidavit stating that one or more endorsements on a check or other item deposited is forged, or that a check or other item deposited has been altered, we may freeze the amount or charge back the amount of the item to your account, without prior notice, even though you have already used the funds. See the “Statements” section for your duties to discover and report missing or forged endorsements.

You agree to reimburse us for any loss, cost or expense we incur as a result of your failure to endorse an item exactly as drawn or your failure to place any endorsement in the proper area on the back of a check.

Federal law requires the endorsement area be kept clear or unobstructed. The following guidelines will help you comply with these requirements and avoid unnecessary delays in processing your deposits:

  • Your endorsement cannot be more than 1½ inch in height
  • The primary endorsement must be placed along the backside, left edge of the check when facing you. Your endorsement cannot extend into the area reserved for the Credit Union’s endorsement

The restricted endorsement zone must be kept unobstructed. Loss resulting from noncompliance will not be the responsibility of the Credit Union.

In the event that you issue a check with a condition that adversely affects the ability of a financial institution to endorse the check legibly (e.g., because of carbon strips or preprinted information on the back of the check) you agree to be liable for any loss or damages arising there from.


Facsimile or Mechanical Signatures

Many members use a facsimile or mechanical signature, including a stamp, to authorize transactions, provide and authorize instructions, and to endorse or otherwise complete other documents. If you use a facsimile or mechanical signature for any of these purposes, you are responsible for any such transactions, instruction or endorsement that appears to us to bear a signature that resembles the signature of a person authorized to sign on your account. This means that we are not responsible for any misuse of a facsimile or mechanical signature if we believe you authorized it. You agree to compensate us for all losses, claims, damages, or expenses that result from our acceptance of any such facsimile or mechanical signature, even if a particular item or items are not authorized by you or are stamped with an unauthorized facsimile or mechanical signature.


Force Majure

We are not liable for failing to act or delay in acting if our failure or delay is caused by legal constraint, interruption of transmission or communication facilities, equipment failure, war, emergency conditions, terrorist action, Act of God or other circumstances beyond our control.


Forgeries, Missing Signatures & Alterations

The authorized signatures for an account are noted on the Business Account Application. Any one of the authorized signers may sign checks or withdrawal orders and give us instructions regarding the account. If there is a conflict, we reserve the right to require all authorized signers to sign a check or withdrawal order. Even if the authorized signers on an account change, we may continue to honor checks, withdrawal orders and other instructions by authorized signers until we are notified in writing not to do so and have had a reasonable opportunity to verify the authenticity of the notice of change. This may include a requirement for new authorizing resolution, at our option, reasonably acceptable to us.

Joint accounts include accounts held as joint tenancy, tenancy in common or as community property. A joint account holder authorizes the other account holder(s) to endorse items in that person’s name and to cash the items or deposit them into the joint account.

We will have no responsibility for reviewing the number or combination of signatures on an item drawn against your account. This means that the Credit Union will have no liability to you if an item is drawn against your account that is contrary to your signature requirements as long as any one required signature appears on that item.

If your negligence contributes to an item being altered, changed or forged, we will not be responsible if we pay the item in good faith and in accordance with the reasonable commercial standards of our business. If anyone disputes the payment of an item because it was altered, changed, forged, bore an unauthorized signature or was otherwise improper, we may not credit the amount until the dispute has been resolved.

If we send you a statement or item which contains or discloses a forged, unauthorized or missing endorsement, you must notify us promptly of that fact, but no later than 2 months after we mail or deliver the item or statement to you. You further agree that if you fail to report a forged, unauthorized or missing endorsement within this time frame, you cannot assert a claim against us on any items or transactions in that statement and as between you and us the loss will be entirely yours. This two-month limitation is without regard to whether we did or did not use ordinary care. The Credit Union will have no liability to you for failing to detect a forgery of your signature or an alteration of an item drawn off your account if the forgery or alteration is such that a reasonable person could not reasonably be expected to detect it.

The Credit Union investigates any claim that a transaction is unauthorized. Unless a law, rule or regulation provides, such a claim is deemed not to have been made until submitted in writing. You agree to fully cooperate in our investigation of such a claim. Your cooperation may include among other things, at our discretion: 1) a requirement to submit a declaration under penalty of perjury describing your claim; 2) a report filed with the appropriate police and/or investigatory authority; 3) providing documentation in support of your claim within 30 days after requested; and 4) if your claim arises from employee fraud or embezzlement, the Credit Union may require you to make a claim against any insurance coverage that you might carry for such a claim. Our liability to you will be reduced by the amount your insurance company pays for any claim you tendered.

Your failure to cooperate in the Credit Union’s investigation may result in our refusal with no liability to you not to honor your claim. We may, but are not required to, provisionally credit your account pending the final outcome of the investigation. If we determine, in our sole discretion, that the debit to your account was not improper, then we may reverse a provisional credit made to your account.


Hold Harmless & Indemnity

In addition to any other rights we may have under this agreement (or other agreements), or at law or in equity, you agree to indemnify, defend and hold us harmless against any harm, losses, cost or other expenses (including attorneys’ fees and costs) (“loss”) incurred by us as a result of or arising out of action or inaction by you, any other account holder or any authorized signer in connection with any of your accounts at the Credit Union. Where there is more than one account holder, this hold harmless and indemnity obligation is joint and several. Without limiting the foregoing, this hold harmless and indemnity will include any loss suffered or incurred by us due to: 1) our action in stopping payment or not stopping on an item; 2) our actions or inactions in response to any message or instruction that you may convey; 3) claims or losses arising out of our refusal to honor restrictions placed on items; 4) our honoring or dishonoring a demand draft, electronic debit or similar item or entities; and 5) any US or foreign governmental entity seizing, freezing or otherwise asserting or causing us to assert control over any account or funds in an account of yours. It will apply whether or not such action is ultimately determined to be authorized under the laws of the US or its territories, or of any foreign jurisdiction. You specifically agree that we are not required to inquire or determine the authenticity of any action taken by any US or foreign governmental entity prior to acceding to any legal process initiated by it.

In no event shall the Credit Union be liable to you for special, punitive or consequential damages or for any incidental expenses incurred by you, including, without limitation, attorney’s fees.



The Credit Union will not establish a business relationship with a member until we have formed a reasonable belief that we know the individual’s identity. This includes each principal and signer for a business entity. To open an account at the Credit Union, you will need a valid, un-expired, government issued identification bearing a photograph. Examples of acceptable identification include:

  • Driver’s license
  • State identification card
  • US Armed Forces ID card
  • Passport

The Credit Union also requires an appropriate social security number or taxpayer’s identification number for US persons or entities.

Deposit accounts for fiduciaries, partnerships, corporations and fictitious business names must provide the Credit Union with valid documentation of trust agreements, court orders, partnership agreements, certificates of limited partnership, articles of incorporation, and a filed fictitious business name statement. In addition, other documents deemed necessary by the Credit Union must be provided prior to account opening.


Identity Theft

Identity theft is on the rise and we would like to remind you of some of the things you can do to protect your identity. These things include the following: not printing your driver’s license or social security number on your checks, ordering tamper resistant checks, notifying us if you have not received your new check order within 15 business days, reconciling bank statements as soon as you receive them and looking for any discrepancies, including, but not limited to, checks cashed out of sequence or unexplained cash flows to or from your account, placing outgoing mail in a secured mail box, not leaving incoming mail in a unsecured mail box or residence mail box, storing and keeping checks, withdrawal and deposit slips, statements and other financial related documents safe, not allowing others access to your PIN or ATM card, writing your checks in a legible manner and with legible ink to help prevent your checks from being altered or forged, writing the numerical amount on checks in a manner that prevents additional numbers from being added by another person, not giving a signed blank check to anyone, not maintaining signed blank checks, not giving anyone permission to sign your name on your checks, being careful of pretext callers who try to obtain your personal information, including Credit Union account numbers and social security numbers, by pretending to be Credit Union personnel or law enforcement, using reasonable methods to discard sensitive documents and placing a credit watch on your account by contacting the major credit reporting agencies.

In addition to the above, please notify us of 1) any suspected or actual theft or loss of your financial information or 2) any type of discrepancy in your Credit Union account statements, checks, or other Credit Union related documents.

If your proof of account (such as a statement, receipt, or other evidence) or any blank check is stolen, lost, or destroyed, you should advise us promptly by calling us at 800.866.6474 and writing us at PO Box 8017, El Monte, CA 91734. We may, but are not obligated, issue a substitute proof of account to you and require an indemnity agreement to the extent allowed by law. We may also require you to open a new account with a new account number for our mutual protection. The original proof of account will be void if a new or substitute proof of account is issued.


Legal Process

The Credit Union may accept and act on any legal process relating to your account (for example, subpoena, restraining order, writ, etc.) that we believe is valid, whether or not the process is served in person, by mail or by facsimile, or if we reasonably believe that we are required by law to comply with its terms. Any legal process is subject to the Credit Union’s right of offset and any Credit Union security interest in the account. If we receive a legal process that affects your account, we may charge a processing fee to your account. See the accompanying Fee Schedule. The Credit Union will have no liability to you because your funds are in any way restricted due to any legal process.


Membership Eligibility

To be eligible for membership in the Credit Union you must be an individual or entity qualifying within the Credit Union's field of membership and must purchase and maintain at least one share (the "membership share") as required by the Credit Union's Bylaws. The par value of a share in the SCE FCU is $5. We reserve the right to close your account(s) if your membership terminates. You agree that at our option we may suspend your rights to member services if you violate the terms of this agreement or any other agreement with us, or if you cause a loss to the Credit Union. You may be expelled if there has been any misrepresentation or any other abuse on any of your accounts or if you fail to comply with Credit Union policies, procedures or bylaws, conduct yourself in a threatening manner or willfully damage Credit Union property.

You also grant us the right to terminate your account(s) and/or membership at any time to the fullest extent allowed by law.


National Credit Union Share Insurance Fund      

Properly established share accounts are insured by the National Credit Union Share Insurance Fund (NCUSIF) up to $100,000. Generally, if a member has more than one account in the same credit union, those accounts are added together and insured up to $100,000. There are exceptions, though. You may obtain additional insurance coverage on multiple accounts, but only if you have different ownership interests or rights in different types of accounts and you properly complete account forms and applications.

The NCUSIF is a fund established by the government to insure deposits at federally insured credit unions. For more information, we have a brochure available which explains deposit insurance coverage, or you may contact the NCUSIF by calling it at 925.363.6200.


Notices Regarding an Account

We may send statements and notices to any party on an account by mailing or delivering a notice to the last address we have on file for the account. Notice to any account holder or authorized representative shall be deemed to be notice to all account holders.

If you fail to give us a current address for the account(s), the notices are deemed delivered to you upon their receipt or preparation by the office of account. Any notice or statement returned to us as undeliverable shall be deemed delivered to you as of the date it is deposited by us in the mail.


Overdrafts & Insufficient Funds

If there are insufficient funds available in your account to pay a check or item, it may be returned unpaid. However, at our sole discretion, we may take the following actions if there are insufficient available funds to cover an item presented to us for payment:

  • Cover the Item according to the terms of any line of credit that you have established with us.
  • Pay the Item and create an overdraft to your account. We may pay the item from funds from another of your accounts or from funds subsequently deposited in the account. Any negative balance on your account is immediately due and payable, unless we agree otherwise in writing. We may place a hold on balances in any other account you may have with us until the overdraft is paid.
  • Return the item unpaid. We may choose, without notice to you, to refuse to pay any item if it would create an overdraft, even though we may have previously established a pattern of honoring such items.

We are not obligated to notify you before we decide to either pay an item that creates an overdraft or to return an item drawn against insufficient available funds. We will assess a fee that will vary depending on the actions we take. Enrollment in one of our overdraft protection plans can help you avoid overdrafts and returned items. Ask us for more details regarding overdraft protection.

If we pay your item against insufficient available funds, you agree to pay the overdraft immediately, without notice or demand from us. Each account holder is jointly and severally responsible for paying any overdraft amounts created by any authorized signer(s) or party to the account, regardless of whether an account holder signed the check or received any benefit from the check. We are not obligated to continue paying checks or items which create an overdraft even if we have done so in the past and we may refuse to do so in the future without any notice to you.



If you attempt to pledge, assign, or in any other manner transfer all or part of any interest in or to your account, the Credit Union will not be bound by the transfer or assignment until it acknowledges its acceptance in writing. The Credit Union is not obligated to accept or in any way recognize the transfer, nor does it have any duty to make any further inquiry regarding the matter. Unless the Credit Union expressly agrees in writing to the contrary, any rights of a transferee or assignee shall be subject to the Credit Union's right of offset and its security interest in your account and it shall be your duty to notify such transferee or assignee of such. The Credit Union shall have no obligation to notify you or any other person prior to disbursing funds from your account in accordance with what the Credit Union in good faith believes to be the terms of the transfer or assignment.


Prime Savings Account Requirement

You are required to open and maintain a Prime Savings Account to avoid closure of that account and any subsequent accounts.


Privacy Notice

SCE FCU and our affiliates and subsidiaries understand the importance of protecting the privacy of our members. As such, we are committed to maintaining the confidentiality of each member’s financial records consistent with state and Federal laws. The following sets forth our policies regarding our use and protection of your financial information.

During the course of business we collect non-public personal information about you from the following sources:

  • Information we receive from you on applications or other forms;
  • Information we obtain when verifying the information we receive from you;
  • Information about your transactions with us, our affiliates, or others; and
  • Information we receive from a consumer-reporting agency.

Generally we may share all information that we may collect from you as described above, with third parties to complete transactions and maintain accounts and related records (such as data processing transactions and records). We may also share such information with select third parties if: 1) you authorize or request it; 2) the information is provided to help complete a transaction initiated by you; 3) the information is provided to a consumer reporting agency in accordance with the Fair Credit Reporting Act; or 4) the disclosure otherwise is lawfully required or permitted.

We may disclose all of the information we collect as described above to companies that perform marketing services on our behalf or other financial institutions with whom we have joint marketing agreements. We may also disclose information about you under other circumstances as permitted by law. Please be assured that we do not provide account information or personal information to non-affiliated third parties for the purpose of independent telemarketing or direct mail marketing of any products or services to those parties.

Also we may enter into agreements with other businesses to provide support or services for one or more of our products, such as mailing houses that assist in delivering statements or other promotional material. Under certain circumstances we may also enter into joint marketing agreements with other financial service providers, such as mortgage bankers, securities broker-dealer, and insurance companies. Before entering into relationships with such entities, we require them to agree to safeguard our member’s information and to comply with all applicable privacy laws.

Furthermore, we may also disclose non-public personal information about you to other non-affiliated and affiliated third parties not described above as permitted by law and our policies.

In addition, the Credit Union is affiliated with a number of Credit Union Service Organizations, such as Community Mortgage Funding and EDCO Financial Services and Member Business Services. We work together and share information about your accounts to provide the products and services you want. Any affiliates or subsidiaries formed after this agreement has been distributed are bound to this privacy policy.

If you decide to terminate membership or become an inactive member, we will adhere to the privacy policies and practices as described.

Because of the limited manner in which we share information with non-affiliated and affiliated third parties, we are not required to provide you with the opportunity to opt-out from the disclosure of information to such third parties.

We restrict access to your personal and account information to those employees who need to know that information to provide products and services to you. Our employees access information about you when needed to administer your accounts, to provide requested services, or in response to a legally valid outside request or order (such as a subpoena). In addition, our employees may also access information to exercise our rights under the law or pursuant to any agreement with you. We maintain physical, electronic, and procedural safeguards that comply with Federal regulations to guard your non-public personal information.

We strive to ensure that our records contain accurate information about you. If you see any inaccuracies in your statements, please call 626.960.6888. We will promptly investigate and make any necessary changes to update your records.

Pursuant to the Fair Credit Reporting Act (“FCRA”), it is the Credit Union’s practice to share Transaction/Experience Information (as defined by the FCRA) with its affiliates and non-affiliated third parties to the extent permitted by law.



The Credit Union’s relationship concerning your account is that of debtor and creditor; no fiduciary, quasi-fiduciary, or special relationship exists between you and the Credit Union.


Restrictions on Use

Except if specifically agreed to, any message or instructions transmitted by you over the Internet or any other electronic communications system will not bind us, and we will be under no obligation to respond to or act upon the same. You will bear the risk of any losses that may result from having chosen the particular telecommunications system you choose, including any losses that result from breach of security or from the Credit Union’s not responding or acting on the message. No electronic contracts may be created without the express consent of the Credit Union. If the Credit Union, in our sole discretion, chooses to respond or act upon an electronic message or instruction, then the following applies:

  1. If the message or instruction is authentic or validated by you, then you will be bound by the message or instruction;
  2. The Credit Union will not be deemed to have received the message or instruction until it has actually received it and has had a reasonable time to act;
  3. The Credit Union will not be bound to act on or accept any future message or instruction; and
  4. The Credit Union may use any account number provided by you even if it identifies a beneficiary different from the beneficiary named by you.

If you have an agreement (other than this Agreement) with the Credit Union governing electronic or other messages or instructions, then the terms and conditions of that agreement will control instead of the foregoing.


Returned Items or Debits

If a check or other item (or image of such) is cashed for you or which you deposit to your account is returned unpaid for any reason, we may charge your account for the amount of the check or other item, interest earned and a handling fee. This may include, among other circumstances: 1) checks and electronic debits that are returned because the maker of the check (or payee of the debit) had insufficient funds in its account; or 2) checks/debits that were paid originally and later are returned accompanied by an affidavit which states that the item(s) or debit(s) are unauthorized or any endorsement is forged or unauthorized, or that the item or debit has been altered in any way. We may charge your account without questioning the truth of such an affidavit. We may also debit your account for any interest you may have earned on the amount.

If any check or other item deposited in your account is returned to us through the Federal Reserve, a clearing house or one of the other normal check return channels, we may accept that return and charge the check or other item back against your account without regard to whether the institution on which the check or other item is drawn returned the check before its midnight deadline.

We may, at our option, notify you if an item has been returned unpaid. You authorize us to redeposit the item, at our discretion, on your behalf. You waive any right to receive a written notice of the returned item and you authorize us to charge back the item to your account if it is again returned unpaid.


Right of Offset

The law provides that we may, but are not obligated to, take funds on deposit in your account to satisfy a debt you owe us which is not paid when due. This is called the right of offset. If we exercise this right of offset, we shall comply with all applicable laws and regulations and we will notify you promptly of the action taken if required by law to do so. To the fullest extent permitted by law, all sums in your deposit accounts are subject to our right of offset for any liabilities owed to us by any of the following persons: any one or more of the account holders, including any other person who is a joint account holder; or any partnership of which you are a general partner; or any other person or entity with whom you are a co-obligor, or have agreed to act as surety or guarantor, or for whose debts you are liable or may be contingently liable. If the debt arises from a note, “any due and payable debt” includes the total amount of which we are entitled to demand payment under the terms of the note at the time we charge the account, including any balances for which the due date we properly accelerated under the note.

If we exercise our right of offset against an account that is subject to an early withdrawal penalty, the account may be assessed the applicable early withdrawal penalty. We will not be liable for the dishonor of any check or draft when the dishonor occurs because we charge and deduct an amount you owe us from your account. You agree to hold us harmless from any claim arising as a result of our exercise of our right to repayment.

This right of offset does not apply to your account if: 1) it is an IRA or a tax-deferred retirement account; 2) the debt is created by a consumer credit transaction under a credit card plan; or 3) the debtor’s right of withdrawal only arises in a representative capacity.



If any of the provisions of this agreement are determined to be void or unenforceable, the remainder shall remain in full force and effect.


Stale Dated/Post Dated Checks

Upon presentment of a stale dated item for payment more than 6 months after its date or a post-dated item, you agree that we may, in our sole discretion and without notice or inquiry to you, charge your account for the item. However, we are not obligated to do so; we may reject the item at our discretion. You agree that our obligation of good faith does not require us to make any inquiry of you or require us to give you notice prior to the payment of a stale dated or post-dated item. Our payment of the item will be in good faith absent written notice from you in the form of a stop payment order. If you want to ensure that we do not pay a stale dated or post-dated item, you should place a stop payment order on the item. Stop payment instructions must be received by us as to give us a reasonable opportunity to act on it before final payment of the item.



With certain exceptions, we provide all account holders with statements listing their account transactions. You agree to examine your statements as soon as you receive them. Items are not returned with your statement. Upon your request, the Credit Union will make a reasonable effort to promptly provide you with a copy of any item in its possession, and items are available to view and print from our online banking service. Unless otherwise agreed, you waive any right to receive any original item after it is paid.

You assume full responsibility for monitoring and reviewing the activity of your account and the work of your employees, agents and accountants. We suggest that you separate the functions of check issuing and check/statement reconciliation and that you review these functions periodically. Losses due to failure to institute audit and practices appropriate to your operation will be your liability.

You agree to notify us immediately if there is an error or an unauthorized transaction shown on your statement. Unless you notify us promptly, we will assume the statement is correct. If we send you a statement or item which contains or discloses an erroneous debit, unauthorized or missing signature or an alteration, you must notify us promptly of that fact, but no later than 30 days after we mail or deliver the item or statement to you. For these purposes, statements will be deemed to have been mailed on the date the statement is first made available to you, or its actual mail date, whichever is earlier. You further agree that if you fail to report any erroneous debit, unauthorized or missing signatures or an alteration within this time frame you cannot assert a claim against us on any items or transactions in that statement, and thereafter by the same wrongdoer, and as between you and us the loss will be entirely yours. This 30-day limitation is without regard to whether we did or did not use ordinary care.


If we send you a statement or item which contains or discloses a forged, unauthorized or missing endorsement, you must notify us promptly, but no later than 2 months after we mail or deliver the item or statement to you. You further agree that if you fail to report a forged, unauthorized or missing endorsement within this time frame, you cannot assert a claim against us on any items or transactions in that statement and as between you and us the loss will be entirely yours. This 2-month limitation is without regard to whether we did or did not use ordinary care.

You assume full responsibility for notices, vouchers, checks, items, statements and other documents which are lost, destroyed or stolen while in the mail or in transit to or from you or a third-party. You agree to promptly return any checks or other items to us, which do not belong to you.

Your statements and notices will be mailed to the address we have on file for the account. If you do not receive your scheduled statement, it is your obligation to notify us. Deposit account statements are available in our online banking service; it does require registering for the service.



Stop Payments

If you want to stop payment on a check you have written, you must place a written stop payment order at the branch that holds the account or by contacting the Call Center before we finally pay it. Contacting the Call Center will require a faxed signed document for verification. Any authorized signer on the account may furnish a stop payment order. For example, a joint account holder may stop payment on a check written by another account holder, You must furnish us with the date, the check number, exact amount of the check and the name of the payee in order for us to stop payment on the item. If you provide us with any incorrect information, we will not be responsible for our failure to stop payment on the check. We will not be responsible for a stop payment order if we do not have a reasonable opportunity to act on it before final payment of the item.

You may furnish the stop payment order orally or in writing. If you give us an oral stop payment order, then it will be effective for 14 days. The stop payment order will expire at the end of 14 days unless you give us written notice of the stop payment order. We have a special form for this purpose. Upon confirming the order in writing, the order will remain in effect for 6 months and must be renewed by you every 6 months to remain in effect. If you do not renew the stop payment order when it expires and the item is presented for payment, we may pay the item and charge it to your account. There is a charge for each stop payment order and renewal order requested. See the accompanying Service Charge Schedule. Only the person who initiated the stop payment request may cancel a stop payment request.

In some cases, we may pay an item even if a stop payment request is in effect. If, for example, another person or entity is determined by us to be a “holder in due course” of the item, we may pay the item. We may also pay any items payable to us without regard to any prior stop payment order.

If we pay a check that has a valid stop payment order on it with correct information, we may be responsible to you up to the face amount of the item if you establish that you have suffered a loss because we paid the item. You agree to assign to us all of your rights against the payee and/or any other holder of your check. You also agree to cooperate fully with us in any legal actions that we subsequently take against such persons. Anyone holding the check, including the Credit Union, may be entitled to enforce payment against you despite the stop payment order. These procedures also apply to any money orders you purchase from us.


Taxpayer Identification Number

Federal law and regulations may require us to obtain a taxpayer identification number for the account holder of each account, with certain limited exceptions. The taxpayer identification number for an individual is usually a Social Security number and for a business it is the Employer Identification Number. The number is included on reports filed with the IRS concerning dividends paid to you by the Credit Union.

You are required to certify under penalty of perjury: 1) the taxpayer identification number given to us is correct; 2) whether you are exempt from backup withholding; and 3) that you are a US person (including a resident alien). This certification is located on the Business Account Agreement.

Dividends paid on deposits made by individuals who are not citizens or residents of the United States may or may not be reported to tax authorities and may or may not be subject to backup withholding. We will, however, report dividends paid to you if you are a resident of Canada.

When an account earns $10 or more in dividends per year, or if backup withholding is imposed, we generally report the dividends paid and the amount withheld to the IRS (and to the California Franchise Tax Board if your mailing address is in California). You will receive a copy of the information reported to the tax authorities.


Telephone Transfers

Subject to qualification, the Credit Union may allow you to obtain information about your accounts and to transfer funds between your accounts. A telephone transfer of funds from one account to another account with us, if otherwise permitted or arranged for, may be made by the same persons and under the same conditions generally applicable to withdrawals made in writing. Unless a different limitation is disclosed in writing, the law restricts the number of transfers from a savings account to another account, or third parties, to a maximum of six per month (less the number of certain “preauthorized transfers” during the month). Other account transfer restrictions may also be described elsewhere in this Agreement.

You will notify the Credit Union IMMEDIATELY by calling or writing the Credit Union if you think your statement is wrong or if you need more information about a telephone banking transaction listed on your statement or receipt. You must report any unauthorized telephone transaction to the Credit Union within 14 days after we mail you the statement on which the transaction appears or you otherwise have notice of the transaction. If you don’t, you will be deemed to have authorized the transaction.


Telephone Call Recording & Monitoring

We may record or monitor any telephone call made or received by our Financial Service Consultants. When you call us, you agree that we may record or monitor your call without further notice to you.


Transaction Limitations ─ Savings and Money Market Accounts

No more than six pre-authorized, automatic, electronic or telephonic transfers may be made from each savings account or money market account to another account at the Credit Union or to a third-party in any calendar month, and no more than three of these six transfers may be made by a check, draft, debit card or similar order payable to a third-party. If an account holder exceeds, or attempts to exceed, these transfer limits, the excess transfer requests may be refused or reversed, a fee may be imposed on the excess transfer requests, and the Credit Union may reclassify or close the account. Transfers initiated by telephone or by CU@Home must be counted among the 6 monthly transfers. There are no limits on the number of withdrawals if initiated in person.


Share Certificates

Share certificate accounts are automatically renewable. The dividend rate and other terms and conditions for automatically renewable accounts may change at the time of renewal.

You may not make deposits into a share certificate account until the maturity date. We may impose a penalty if you withdraw any of the funds from your account before the maturity date. The penalties are imposed as follows:

  • If the term is 91 days, all dividends are forfeited
  • If the term is 6 months up to 18 months, 90 days dividends are forfeited
  • If the term is 18 months up to 60 months, 180 days dividends are forfeited


Unlawful Internet Gambling Enforcement Act (REG GG)

The US Department of the Treasury and the Federal Reserve Board have issued a final rule to implement applicable provisions of the Unlawful Internet Gambling Enforcement Act of 2006, which is effective December 1, 2009.

The Act prohibits any person engaged in the business of betting or wagering from knowingly accepting payments in connection with the participation of another person in “unlawful Internet gambling,” defined as “placing, receiving, or otherwise knowingly transmitting a bet or wager by any means that involves the use, at least in part, of the Internet where such a bet or wager is unlawful under any Federal or State law in the State in which the bet is made.

In according with the requirements of the Unlawful Internet Gambling Enforcement Act of 2006 and Regulation GG, this notification is to inform you that restricted transactions are prohibited from being processed through your account or relationship with the Credit Union. Restricted transactions are transactions in which a person accepts credit, funds, instruments or other proceeds from another person in connection with unlawful Internet gambling.



We may delay enforcing our rights under this Agreement. Any waiver by us shall not be deemed a waiver of other rights or of the same right at another time. You waive diligence, demand, presentment, protest and notice of every kind, except as otherwise set forth in this Agreement.



Unless otherwise clearly indicated to the contrary, any one of you who signs in the space designed for signatures on the signature card, including any agents, may withdraw or transfer all or any part of the account balance at any time on forms approved by us. The fact that we may honor withdrawal requests that overdraw the account balance does not obligate us to do so, unless required by law. Withdrawals will first be made from available funds, and we may, unless prohibited by law or our written policy, refuse any withdrawal request against unavailable funds, even if our general practice is to the contrary. We reserve the right to refuse any withdrawal or transfer request that is attempted by any method not specifically permitted, which is for an amount less than any minimum withdrawal requirement, or which exceeds any frequency limitations. Even if we honor a nonconforming request, repeated abuse of any limitations may eventually force us to close this account. We will use the date a transaction is completed by us (as opposed to the day you initiate it) to apply any frequency limitations. If you originate a funds transfer for which the Federal Reserve Bank’s wire transfer system is used, and you identify by name and number a beneficiary financial institution or a beneficiary, we and every receiving or beneficiary financial institution may rely on the identifying number to make payment. We may rely on the number even if it identifies a financial institution, person, or account different from the institution, person, or account identified by name.